Euro woes dominate annual Davos conference in Swiss Alps

Merkel tells Europe to reform; Jagger gives Cameron no satisfaction

German Chancellor Angela Merkel delivers a speech during the opening ceremony of the World Economic Forum (WEF), in the congress center of the Swiss resort of Davos on January 25, 2012. (Vincenzo Pinto/AFP/Getty Images)

BRUSSELS, Belgium – The Swiss alpine resort of Davos used to be renowned as the setting for Thomas Mann’s classic novel The Magic Mountain, where a bunch of sick people agonize about life while catastrophe looms in the form of World War I.

Since 1971, Davos has become better known as the site of the annual World Economic Forum of global movers and shakers. This week it will be filled with powerful people agonizing about their sick economies while catastrophe looms in the form of a new world recession.

Mick Jagger said he was curtailing his visit however. The Rolling Stones’ front man pulled out of planned appearance with Prime Minister David Cameron at a tea party to promote Britain, claiming he was being used as a “political football.”

Over the years, Davos has seen historic meetings between Israelis and Palestinians, black and white South Africans and Greeks and Turks which have been hailed as promoting peace. Aid groups, environmental campaigners and trade unionists all see the forum as a useful place to get their messages across to the business and political leaders. Government officials say the informal networking atmosphere facilitates deals and exchanges of ideas.

However, it’s not just the anti-globalization protesters camping outside the Davos security ring who wonder about the relevance of the elite, invitation-only get together in today’s age of austerity.

“Over the years, and in the context of an increasingly unsettled and uncertain world, Davos has not had much impact,” blogged Mohamed A. El-Erian, CEO of the global investment management fund PIMCO.